Cost Segregation, Part 1, Kim Lochridge @ Engineered Tax Services

Real Angle: Building Success in Commercial Real Estate

In this conversation, Joshua and Kim discuss energy efficiency tax credits and deductions. They cover the history of these incentives, including the Energy Policy Act of 2005, and focus on two major programs: Section 179D and Section 45L. Section 179D provides a tax deduction for commercial buildings that meet energy efficiency criteria, while Section 45L offers a tax credit for residential units. The conversation explores the eligibility criteria, changes in the tax code, and the impact of these incentives on architects, engineers, and developers.

They also touch on the changes brought about by the Inflation Reduction Act, the challenges in qualifying for Energy Star certification, and the future of these tax credits. Additionally, they highlight the involvement of stakeholders in government processes and the complexity of implementing and modifying tax credit rules.

• Introduction
• History of Energy Efficiency Tax Credits
• Section 179D: Tax Deduction for Energy Efficiency Section
• 45L: Tax Credit for Residential Energy Efficiency
• Changes after the Inflation Reduction Act
• Challenges in Qualifying for Energy Star Certification
• Summary of Available Tax Credits
• Future of the Tax Credits
• Involvement in Government and Lobbying Efforts
• The Complexity of Government Processes
• Other Tax Credits for Residential Properties
• Conclusion

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